Maryland Suspends Gas Tax to Offset Inflation at the Pump
The gas tax holiday will save Maryland drivers about 36 cents per gallon for gasoline and roughly 37 cents per gallon for diesel fuel.


As gas prices surge across the country, the federal government and various states are considering gas tax holidays – that is, temporarily suspending gas taxes to help bring down the price of fuel for consumers. On March 18, Maryland became the first state in the country to actually enact a gas tax holiday this year, which takes effect immediately and will last for 30 days.
According to AAA, the average price for a gallon of regular unleaded gas in Maryland on the first day of the state's gas tax holiday was about $4.17 per gallon. Suspending the state's fuel taxes will save Marylanders 36.1¢ per gallon on purchases of gasoline, and the 36.85¢ per gallon for diesel fuel.
Before signing the bill, Gov. Larry Hogan (R) noted that, "as Marylanders face the impact of surging inflation, with the average price of gas rapidly rising, this bipartisan action will provide some relief from the pain at the pump." But there are questions across the country concerning exactly how much relief gas tax holidays actually provide, and whether the level of savings per person justify the overall loss of revenue.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A Marylander who drives 12,000 miles a year in a car that averages 25 miles per gallon will save a less than $15 in gasoline taxes during the 30-day suspension. On the other hand, according to the governor's office, the suspension is expected to cost the state close to $100 million, which will be covered indirectly by the state's record budget surplus.
The governor is also backing legislation that would suspend automatic increases in the state's gas tax. So, more gas tax relief may be on the way for Marylanders.
Georgia also enacted a gas tax holiday on March 18. It will last until the end of May. Whether gas-tax relief measures to offset inflation at the pump move forward in other states remains to be seen. Florida may be the next state to enact a gas tax holiday. The state legislature passed a bill that would suspend the state's fuel tax for 30 days – but not until October. On the federal level, efforts to suspend the national 18.4¢ per gallon gas tax appear to be stalled.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.
-
Four Tax Changes Older Adults and Retirees Should Watch in 2025
Tax Changes This year brings key tax changes that could affect your retirement taxes and income.
-
Are You Leaving Money on the Table? Four Strategies to Free Up Stuck Investments
From forgotten 401(k)s to outdated asset allocations, here’s how stuck money can hurt your retirement.
-
Four Tax Changes Older Adults and Retirees Should Watch in 2025
Tax Changes This year brings key tax changes that could affect your retirement taxes and income.
-
The Most Tax-Friendly State for Retirement in 2025: Here It Is
Retirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Tariff Stimulus Checks Coming? New Proposal Seeks Tax Rebates for U.S. Workers
Tax Breaks A new GOP bill proposes to send $600 in tariff rebate checks to eligible taxpayers. Is there a catch?
-
Biggest Winners and Losers in Trump's New Tax Plan
Tax Law Trump’s mega tax overhaul, known as the ‘One Big Beautiful Bill,’ has distinct winners and losers. Which group do you fall into?
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)
Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ Pockets
Tax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's Finances
Tax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
New Cap on Gambling Loss Deductions Begins Soon: What to Know Now
Tax Changes A gambling losses tax deduction cap in Trump’s “big beautiful bill” is causing an uproar. Here’s what you need to know.